Dave's In Charge: Baby Steps 0-2

We read Dave Ramsey's Total Money Makeover a year ago (well, probably even long than that), but we are only now at a point where we are really ready to commit. Here are the steps we are beginning with. Step 0.1 seems to be the biggest hurdle of all; just tonight, as I was driving and realized I was out of gas, it was only because I didn't have a credit card available that I didn't stop and charge a fill up. It was a very short distance trip, but one that we won't be having to pay back with interest!

Expanded Baby Steps 0-2

Pre-step 1:
0.1 Commit to never borrow again (maybe for a house, but that is all.)
0.2 Get on same page as spouse
0.3 Do a written budget
0.4 Temporarily stop retirement contributions
0.5 Get current on the basics: Food, Shelter, Utilities, Basic Transportation
0.6 Get rid of any toys that will keep from completing snowball in 12 months.
0.7 Cut lifestyle luxuries (extra phone, internet, cable, etc.) if they prevent from reaching EF $1000 within 3 months.
0.8 Get current on all bills.

Once those are completed:
1. Save $1000 baby emergency fund.
1. Chop up credit cards.
1. Get health and life insurance for anyone earning living income.
1. Get rid of car payment that cannot be paid off within 24 months.
1. Raise insurance deductibles if possible. Go with minimal required coverage.
1. Make a will.
1. Get long-term disability insurance.

Then:
2. Do debt snowball; pay off debt, one at a time, in order least to greatest.
2. Take a vacation only using cash (no EF.)


Just like a diet, it's really easy to find excuses and reasons to not make this work. Instead, we are striving to challenge ourselves to really take charge of our own lives. Dave backs his advice with biblical reasoning; God's Word has a multitude of verses that talk about His views on finances, debt, and borrowing. Basically, it comes down to us no longer wanting to be slaves to the lender. (Check out Proverbs 22:7 if you aren't sure what I'm talking about.)

With that in mind, we are doing all it takes to make 2010 our turnaround year. And as my goal to learn to be a diligent housewife, one of my wifely duties is to learn to properly manage our finances. What about you? Where do you stand financially? Are you a slave to the lender as well? Do you reach for the credit card in order to put gas in the vehicle, or have you already committed to taking the short distance route in order to remain the commander of your own money?